Prices for many items continued to rise in the US last month, despite a sharp increase in interest rates to stamp out inflation.
The rate of inflation rose at 3.2% over the year to July, driven by higher housing, car insurance and food costs, the Labor Department said.
That was up from 3% in June, which was the lowest rate in more than two years.
Analysts had expected the increase in the headline rate, after relatively weak price inflation last July.
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